Trade-Ideas LLC identified Interval Leisure Group ( IILG) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Interval Leisure Group as such a stock due to the following factors:

  • IILG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $23.8 million.
  • IILG has traded 1.4 million shares today.
  • IILG traded in a range 217.6% of the normal price range with a price range of $1.07.
  • IILG traded above its daily resistance level (quality: 21 days, meaning that the stock is crossing a resistance level set by the last 21 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

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More details on IILG:

Interval Leisure Group, Inc., together with its subsidiaries, provides non-traditional lodging covering a portfolio of leisure businesses from vacation exchange and rental to vacation ownership. The company operates through two segments, Exchange and Rental, and Vacation Ownership. The stock currently has a dividend yield of 3.5%. IILG has a PE ratio of 11. Currently there are 3 analysts that rate Interval Leisure Group a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Interval Leisure Group has been 1.2 million shares per day over the past 30 days. Interval Leisure Group has a market cap of $788.2 million and is part of the services sector and diversified services industry. The stock has a beta of 1.54 and a short float of 41.2% with 9.73 days to cover. Shares are down 13% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Interval Leisure Group as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity.

Highlights from the ratings report include:
  • The gross profit margin for INTERVAL LEISURE GROUP is rather high; currently it is at 52.53%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 7.45% trails the industry average.
  • The debt-to-equity ratio is somewhat low, currently at 0.96, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.77 is somewhat weak and could be cause for future problems.
  • Net operating cash flow has significantly decreased to $7.36 million or 61.64% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Hotels, Restaurants & Leisure industry average. The net income has decreased by 20.9% when compared to the same quarter one year ago, dropping from $15.56 million to $12.31 million.

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